Review Federal Wages and Income, all W-2 Box 14 entries, for this return to ensure that public employee retirement contributions are correctly categorized as either subject to tax or tax exempt.
The only valid tax category entries for public employee retirement contributions in box 14 are either "NY IRC 414(h) Subject to NY tax" or "NY IRC 414(h) NY tax exempt". "Other - not on above list" is not acceptable for e-file.
Please note that the following situations are not eligible for electronic filing:
- Returns with a negative amount in box 14
- Returns with public employee retirement contributions categorized as "NY IRC 414(h) NY tax exempt":
There is a workaround to bypass the e-file reject for tax exempt contributions.
You can append "NOT" to the end of the box 14 code/description on the W-2 (example 414HNOT).
Make the corrections on the W-2 and resubmit your return.
If the error persists you may need to print and mail your return to file it.
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